ADP PE Ratio 2026
Automatic Data Processing Inc Price to Earnings Analysis
Current P/E Ratio
20.57
Stock Price
$214.36
EPS (TTM)
$10.42
Valuation
Fair Value
PE Ratio Breakdown
Trailing P/E (TTM)
20.57
Based on last 12 months earnings
Industrials Industry Avg
20.00
ADP is 3% above industry
PEG Ratio
178.89
Potentially overvalued
What Does ADP P/E Ratio Mean?
Current Valuation
At a P/E ratio of 20.57, investors are paying $20.57 for every $1 of ADP's annual earnings. This moderate P/E is typical for established companies with steady earnings.
Industry Comparison
Compared to the Industrials industry average P/E of 20, ADP is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $171.49
P/E: 16.46
20% lower
At $192.92
P/E: 18.51
10% lower
At $235.80
P/E: 22.63
10% higher
At $257.23
P/E: 24.69
20% higher
Get Complete ADP Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is ADP PE ratio?
ADP (Automatic Data Processing Inc) has a price-to-earnings (P/E) ratio of 20.57. This means investors are paying $20.57 for every $1 of ADP's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare ADP's P/E of 20.57 to its industry average and historical range.
Is ADP overvalued based on PE ratio?
ADP's P/E ratio of 20.57 is above the Industrials industry average of approximately 20. The stock appears fairly valued relative to industry peers.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). ADP's trailing P/E is 20.57. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For ADP, with a current price of $214.36 and EPS of $10.42, the P/E ratio is 20.57. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG (Price/Earnings to Growth) ratio adjusts the P/E ratio for earnings growth. It's calculated as P/E / Earnings Growth Rate. ADP's PEG ratio is approximately 178.89. A PEG below 1.0 suggests the stock may be undervalued relative to its growth rate, while above 2.0 may indicate overvaluation.